Arbitration in India has been a challenge but the situation is steadily changing. India is rich in economy and has the talent to do it internationally. With an overstressed judiciary and huge pendency of cases, Arbitration is a viable option to litigation in India gaining significance.
The Indian government led by Prime Minister Narendra Modi is taking efforts to establish India as a global hub for institutional arbitration. To lend muscle to these efforts, the government is planning to establish the Indian Arbitration council via an Act. The International center for alternative dispute resolution that was set up in 1995 will be used to set up the council.
The draft Act – Indian Arbitration Council Act 2017, aims at establishment and incorporation of the Indian Arbitration Council for the purpose of creating an “independent and autonomous regime for institutionalized arbitration.” The Indian Arbitration Council is conceived as a flagship institution to conduct international and domestic arbitration.
The Act highlights how dispute resolution has a huge impact on the Indian economy and perception of India globally. There has to be a mechanism that inspires confidence and credibility among litigants of commercial disputes. This includes expeditious settlement of disputes and establishment of institutional arbitration. The government, through the draft Act, is working towards this endeavour.
The Council will be headquartered in New Delhi with branches in other places in the country. A retired Supreme court or High court judge or an eminent person with special knowledge in arbitration will be the chairperson of the body, and will be appointed in joint consultation of central government and chief justice of India. There will be two other part-time members, who will be nominated by the central government in consultation with the chairperson. They will be eminent persons who have experience in administration of arbitration, both domestic and international. Also, a representative of a recognized body of commerce and industry will be part of the council as a part time member. This post is on a rotational basis and and chosen by the commerce ministry.
According to the Act, the objects of the council will be to “collaborate with other national and international institutions and organisations for ensuring credibility of the council as a specialised institution in arbitration and conciliation. Such confidence building measures will further enhance the ease of doing business in India. Being a part of these initiative, the company law services in India are liable to follow the draft act. Several corporate consultant companies in India which provide business advisory services, legal advisory services etc. will now breathe a sense of relief because of this Act as it would enable dealing with the arbitration issues of their client smoothly. This will indeed attract more investments and aid in showcasing India as a investor-friendly nation. For more information regarding business, connect with us on Google Plus.